JV with Eric Helps You Get More
Real Estate Transactions Done!
From dispo/underwriting, finding end buyers, lending, and everything in between, connecting with our team will help you get more deals done!
Wether you're submitting a subto, seller finance, hybrid, cash/flip, or novation, our team will help make sure it gets done from start to finish.
Our Offerings
Subto Deal Submission
Seller Finance Lead/Deal Submission
Hybrid Lead/Deal Submission
Cash/Flip Lead/Deal Submission
Novation Lead/Deal Submission
Frequently Asked Questions
Find answers to common inquiries about our financial advisory services.
Is there any obligation by submitting my information?
There is absolutely zero obligation. Once you tell us a bit about your deal, we’ll take a look at things, maybe set up a call with you to find out a bit more. From there, it’s 100% your decision on whether or not you’d like to do a deal with us. We want you to decide what’s right for you.
How Do I Establishing What Price to Offer?
Light/Turnkey Rehab 70-75% - REHAB - ASSIGNMENT FEE Medium Rehab 65-70% - REHAB - ASSIGNMENT FEE
Heavy rehab 60-65% - REHAB - ASSIGNMENT FEE
Landlords want to be in 80% of as is Value - REHAB - ALSO NEEDS REAL CASHFLOW MONTHLY THRU RENT STRATEGY (rents should be at least 1% of purchase price in that area)
Novation -10% of as-is Value - Assignment fee
-10% for selling cost with realtor /closing cost / concessions / buffer-5-6% Lender Cost for Hard Money / Private Money / Or cash value
NET PROFIT TARGET 30-40k on each deal doesn't matter on rehab cost
Net % Target to make 10% or 15%Net cash on Cash target so if I am putting 100k in profit I want a 50% CoC which is 50k profit
Net Rental Profits For LTR/MTR/STR/RENT BY ROOM/sober living then look at cap rate / CoC
Net Apprecation Growth value in the area is it a hot growing location or poor/ghetto area
How Do I Underwrite the Rent?
CASH ON CASH RETURN TYPICALLY SUBTO/SELLER FI / CAN WORK FOR CASH BUT WE DON'T KNOW EXACT FINANCING THEY GOT COULD BE DSCR or ETC.
CALCULATING EXACT RETURN FOR DOWN PAYMENT/ENTRY FEE RECOUPED
500 PITI
1000/mo rent
-15% VACANCY, MAINTENANCE AND MANAGEMENT
850-500=350 X 12 = 4200/10k = 42% COC
10,000 - SELLER/REALTOR/CLOSING COST/MAINTENANCE/MARKETING/ARREARS/ASSIGNMENT
CAP RATE
100k PP
1000$ Rent X 12 = 12k12k/100k
12% CAP RATE
Evaluate Location: Metro area Luxury vs ghetto or in rural area what kind of people live in this city who is our buyer?
***EVALUATE RENTAL RESTRICTIONS THEN DETERMINE EXIT STRATEGY AVAILABILITY/RENTAL RATES/REHAB/NET CASH COLLECTED AFTER EXPENSES/ FOR RENT OR FLIP
What is a Tax DEPRECIATION BENEFITS FORMULA?
1. Determine the Depreciable Basis of the PropertyThe depreciable basis is the property's purchase price minus the cost of the land (since land is not depreciable). You can also include certain closing costs and improvements made to the property in the depreciable basis.
2. Select the Appropriate Depreciation MethodThe IRS mandates the Modified Accelerated Cost Recovery System (MACRS) for residential rental property. Under MACRS, residential rental properties are depreciated over 27.5 years.
3. Calculate Annual Depreciation ExpenseTo calculate the annual depreciation expense, divide the depreciable basis by the recovery period. For residential rental property under MACRS, this would be 27.5 years.
Example Calculation:Suppose you purchased a rental property for $275,000, and the land value is estimated at $75,000. Thus, the depreciable basis is $200,000 ($275,000 - $75,000). The property is residential and therefore is depreciated over 27.5 years.
Annual Depreciation Expense = Depreciable Basis / Recovery Period= $200,000 / 27.5 years= $7,272.73 per year
What Are Some Good Exit Strategies?
FLIP
WHOLETAIL
LTR/STR/MTR
PADSPLIT/RENT BY ROOM
SECTION 8
What Questions Should You Ask Yourself?
WHEN CASH DEAL ASK WHAT KIND OF FINANCING THEY’RE GETTING PML/HML/DSCR/CONVENTIONAL/CASH
WHAT'S GONNA BE LOAN TO VALUE?
DOES IT COVER REHAB?
HOW MUCH DOWN PAYMENT?
INTEREST RATE?
TAXES AND INSURANCE MONTHLY/YEARLY PAYMENT?
WHAT TAX DEPRECIATION/CASH SEG BENEFITS CAN I RECEIVE?
WHAT'S MY NET PROFIT?
***ASK YOURSELF FOR SUBTO
WHATS EXISTING DEBT/LOAN TYPE / INT RATE / PITI /ENTRY FEE /RESTRICTIONS?